If you’ve recently moved into a new rental residence in Columbia, MD, you might think that renters insurance should be based on the size of your new place. However, this misconception could prevent you from obtaining the right level of coverage. The professionals at HBW Insurance Group can help you determine the appropriate amount of coverage to protect your belongings.

Why Many Renters Underestimate the Value of Their Belongings

Renters insurance is primarily based on the value of your personal property. Unfortunately, many individuals underestimate how much they own and realize the true value only when a covered loss forces them to replace everything at once. While you may start with a modest amount of personal belongings when you first move out on your own, this amount typically grows over time as you accumulate more items.

Renters insurance policies generally include three key components: coverage for personal belongings, personal liability protection, and loss-of-use coverage if your rental becomes uninhabitable. It’s important to discuss liability limits and loss-of-use coverage with your insurance agent to understand typical coverage levels. However, determining the value of your belongings requires some effort on your part.

How to Perform a Room-by-Room Audit

Your personal items include clothing, furniture, electronics, and even food stored in your refrigerator and freezer. To accurately assess the value of your belongings, go through each room in your rental, record what you own, and calculate the total. If you have high-end electronics or other expensive items, you may need additional coverage. A common mistake renters make is setting a lower coverage amount to save on premiums, which can leave them underinsured.

Additionally, if you own valuables such as jewelry or collectible coins, be aware that many standard renters’ insurance policies have payout limits for these items. Consider purchasing an inexpensive rider to ensure full protection for your valuables.

Once you have a clear understanding of the value of your belongings, contact the professionals at HBW Insurance Group to secure a renters insurance policy. Reach out to our Columbia, MD, office today to learn more.